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Romania Transp Ministry Eyes 12,800 Layoffs In Railway Sector, Unions Threaten Protests

Romania’s Transport Ministry is working on a draft act, whereby it will sack 12,800 employees in the railway sector until the end of September, people close to the matter told MEDIAFAX Wednesday.
Romania Transp Ministry Eyes 12,800 Layoffs In Railway Sector, Unions Threaten Protests
11 aug. 2010, 12:11, English

Layoffs mainly target employees with freight railway company CFR Marfa (5,000 people), employees with passenger railway company CFR Calatori (3,900 people), employees with railway company CFR SA (2,900 people) and employees with rail upkeep company Electrificare CFR (1,000 people).

The ministry sacked 10,361 employees in the railway sector between March and April 2010, arguing at the time that the poor economic and financial situation within companies in the sector required a restructuring and reorganization program. Layoffs mainly targeted employees with CFR Marfa (6,700 people), CFR Calatori (1,100 people) and train car upkeep and repair company CFR IRV (800 people).

Upon termination of their labor contracts, employees will get double the average net salary per economy, unemployment benefits, and a monthly income that will be granted for a period of 12 to 15 months.

Unions in the railway sector said they would not accept any restructuring program at CFR and stressed employees will halt all activities and sue the state in case of a new round of layoffs in the sector.

Iulian Mantescu, a union leader, on Wednesday told MEDIAFAX he wasn’t informed of any layoff measures. He went on saying it is almost impossible to apply such measures, considering there is no money to ensure severance pay in case of layoffs. This situation, he added, would discriminate against the employees who were sacked earlier this year and received severance pay.

Mantescu thinks such measures may have been taken following talks between Transport Minister Radu Berceanu and the heads of railway companies. During talks, Berceanu supposedly asked the latter to cut spending and a new wave of layoffs appeared to be the only solution.